Water system cost placed at $29.5 million

by Tom Chillemi – 

How much will Middlesex Water Authority’s  (MWA) water system cost the county? That question is often asked by citizens and the Sentinel recently asked the MWA to explain the costs.

The MWA is an independent entity separate from the Middlesex County government. It has been financed by the U.S. Department of Agriculture (USDA), which requires that MWA be self-sustaining and pay for its construction, operation and maintenance only from customers on the system.

So, how much will Middlesex County pay? The short answer is the county has paid $700,000 for fire protection infrastructure including 199 fire hydrants; plus $257,000 per year to cover the cost of additional infrastructure dedicated to fire protection.

“From the beginning the MWA was chartered as an independent authority with no county funding,” explained Greg Chambers, who serves as chairman of  the MWA board. The MWA borrowed approximately $1.6 million from the county early on, but paid that back fully once the MWA had secured the USDA funding. The MWA was established in June 2014 by the Middlesex Board of Supervisors.

Total cost

“The total system cost including engineering, land, construction, etc. is budgeted at $29.5 million,” said Chambers. “Right now we expect to finish slightly early and under budget.

“When estimates came in higher than expected last year at bid opening, the USDA extended our loans to cover the difference,” said Chambers. “Our USDA financing is at 1.125% for 40 years. We will receive a grant of $3 million from the USDA as part of this project. 

“We have no other sources of funding. We need to keep firmly in mind that the original project budget covered 488 customers. We’re now at 693 customers, so some cost increase is to be expected for more pipe, more meters, etc.”